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b. [10 points] Do you agree with the following statement: According to the probit, male students are 51 percentage point more likely to want to
b. [10 points] Do you agree with the following statement: According to the probit, male students are 51 percentage point more likely to want to study in the US compared to female students. On the other hand, the linear probability model estimates say that male students are only 20 percentage points more likely to want to study in the US.Suppose the U.S. Citizenship and Immigration Services is interested in understanding why international students want to study in the US. The agency randomly selects 1000 international students and asked the students whether they would come to the US to study. Their answer was coded as a dummy variable given by USStudy: = 1 if the student would study in the US and 0 otherwise. Data were also collected on their gender (Male, = 1 if male and = 0 if female) and their degrees, the county of origin as well as their age. The following table summarizes several estimated models where we controlled for all the variables, but only reported the coefficient on gender. Probit Logit Linear Probability Male 0.51 0.47 0.2 (0.013) (0.016) (0.04) Constant 0.712 0.89 0.3 (0.34) (0.34) (0.34) a. [10 points] A friend tells you that you can't use the results of the linear probability model. Do you agree with your friend? Give an explanation
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